Buy powerful gold in Dhanteras; yellow metal hits 56,000 levels for the year: Traders

NEW DELHI: Due to good timing, Dhanteras is being held on two days leading to an uptrend in the market.
Buyers aren’t afraid to invest in gold that’s rallied on the first day. Experts are saying that there is strong buying in the market and expect to hit 56,000 in a year’s time. They also indicate an adjustment in international gold price has occurred since the dramatic interest rate hikes of US Federal Reserve and buyers are expected to buy at a discount.
On Sunday, 24K gold traded at Rs 51,290 / 10 gm in the morning, up Rs 10 from yesterday’s closing price.
Ajay KediaThe director, Kedia Advisory, said, “We see gold demand on Dhanteras likely to pick up sharply after two years of Covid-19 restrictions. This year has been largely unrestricted and more people are able to shop during the lockdown. This year. Yes The number of weddings has also skyrocketed this year and the demand for jewelry is also higher.”
He added that although there could be some volatility in global markets in the near term, arising from the outcome of the US Federal Reserve meeting early next month where it could raise interest rates. , in the country, precious metals are likely to go through festivals and purchase marriages.
However, the silver rate traded unchanged at Rs 57,700 per kg in Delhi, Chennai and Mumbai on Sunday.
Ajay Kedia said, “Also, a weak rupee is also likely to support gold prices…for Muhurat In trade, global factors are likely to act as a factor and the market could move sideways to the negative, however in a year’s time gold could soar to Rs 56,000. ”
On October 22, in India, the 22 carat gold rate increased to Rs 47,000 and the 24 carat gold rate to Rs 51,280 / 10 grams, a sharp increase of Rs 750 – Rs 830 respectively.
On the international gold market, Manoj Kumar JainDirector, Head of Commodities and Currency Research, Prithvi Finmart, said, “Gold prices have corrected about 20% from last year’s international highs set by the US Federal Reserve. interest rate hikes and US bond yields rise The dollar index is trading at a near 20-year high and the US 10-year bond yield is at a 14-year high. The dollar has also strengthened against most The price of gold fell from around $2,085 an ounce to $1,620 an ounce and is currently trading around $1,655 an ounce.
Manoj Kumar Jain said a strong dollar and US bond yields have weighed on gold prices but geopolitical tensions, higher inflation and higher crude oil prices are supporting gold prices lower.
He thinks that if the Federal Reserve’s interest rate hike happens, the price of gold will soon surpass the threshold of $ 1,700 an ounce in the international market.
Furthermore, in his view of buying yellow metal“In our view, gold is a bearish buy in the current situation and it should hold the $1,600 level in the international market,” Jain said.
Mr Jain also added that in the domestic market, the rupee weakness is supporting the gold price and it will not fall below 49,500 in the near term and is expected to test the 51000-51600 level soon. Jain suggests buying gold on every drop from 50400 to 50000 with a stop loss of 49500 for 51000-51600 upside targets.


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